Brian Walsh (Galway West, Fine Gael)

I do no one a disservice when I say there is not a single person in the House who is entirely satisfied or comfortable with the events of noon today when we transferred funds to unnamed bondholders in the Irish Bank Resolution Corporation, IBRC. Given the volume of correspondence my colleagues and I have received from the public on this matter in recent days, it has not been a popular decision, but it is undoubtedly the correct decision. In time, we will derive great benefit from the decision to honour our sovereign debts.

For far too long, our predecessors made decisions on the basis of short-term political gains. Thankfully, the policy of keeping an eye on the next general election has been confined to the history books. During its short term in office, the Government has demonstrated numerous times that it is prepared to make difficult, unpopular and unpalatable decisions in the national interest. Today's honouring of our obligations to the bondholders is one such decision.

Everything the Government does is with a view to returning to international bond markets, as we did today, and relieving ourselves of the troika's assistance. The Government has been successful in this regard. Prior to the last general election, Irish bond yields stood at 14%. The yield on those same bonds when we dipped our toe in the markets today was marginally over the 5% mark. Bond yields have fallen sharply because of the Government's decisions since assuming office, including the honouring of our obligations to the bondholders. Lest there be any doubt, failing to pay the bondholders would be catastrophic for our ability to return to the markets and for the rate of interest we would pay on bonds.

National debt is forecast to hit €200 billion during the course of the next 12 months. Each 1% reduction in bond yields that we achieve will result in a saving of €2 billion per annum. The reality is that this is our debt and we must repay it.

See this speech in context